Berkshire trails red-hot S&P 500 by biggest margin so far this year The S&P 500 has reached a new record high, driven by hot tech stocks and enthusiasm for AI profits, while Berkshire Hathaway’s shares have remained largely unchanged. This contrast has resulted in Berkshire’s B shares trailing the S&P 500 by the largest margin year-to-date. Simultaneously, a proposed $85 billion merger between Union Pacific and Norfolk Southern is on hold as the Surface Transportation Board requires more information on its competitive impact.

• The S&P 500 closed at a record high in May, fueled by gains in tech stocks.
• Berkshire Hathaway’s shares have significantly underperformed the S&P 500 year-to-date, with the gap widening in April and May.
• The tech stock rally is driven by expectations of AI profits and infrastructure spending.
• Berkshire maintains a conservative strategy with minimal AI exposure and substantial cash reserves.
• A proposed $85 billion merger between Union Pacific and Norfolk Southern is paused by the Surface Transportation Board for more information.
• Berkshire’s BNSF railroad opposes the merger, citing anti-competitive concerns.